asim junaid

7/30/2019 Asim Junaid

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Name Asim junaid

Section (s11)

Reg n0 BB123055

Submitted to: Sir Ahsen Ahmed


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Task 1

I. Vision and business objectives

Morrison's stores aims and objectives is to make them unique by offering freshly

prepared food, ensuring that their food is of quality and aiming at bringing their

store to every neighborhood in the UK such that they are reachable in a radius

of 15 minutes drive.

1. Make profit

2. Expand business

3. Sell cheaply to customers

4. Keep customers coming back to the business (loyalty)

5. To try and produce food cheaply

Keeping things simple: Our vision to be the Food Specialist for

Everyone is now well advanced. Our constant focus on freshness, great

value and outstanding service is appealing to more and more people. And

were now closer to more customers, having opened 43 new stores last

year.

II. External factors

Economic Factors:

These factors affect the individual supermarket on the local economical development and councilrate.

Again rate of inflation in the economy, high recession and other budgetary rate can affect thecompany decision.

Development of pan European economy and their investment policy can create an impact onMorrisons.

Compete within U.K. market by providing subsidiary to the European farmers.


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Socio Demographic and Cultural factors:

Slow removal of class system like different customer segmentation, targeting and positioning

may also effects the company.

Apart from this aging population can also affect the employment of company in future.

The country has increasingly effects of different cultures and different religions may affect the

present analysis of the company.

Technological Factors:

Increasing technology has great impact on any industry; the involvement of Ecommerce can leadto downfall of the company.

From the service point of view; customer transaction are changing speedily due to rapid changes

in technological development.

Again technology cut down the manpower strength may affect the company structure.

Improvement in the internal and external factors affects the Morrisons company environment

for example usage of internet etc.

Recent advancement in supply and value chain can also affect to gain the competitive advantage.

Ecological and Ethical Factors:

Environmental friendliness and publicity on ethical issue can affect the situation of the company,because most of the customers are concerned with ethical buying.

Environmental friendly activities on green can change the series of value chain.

Conclusion:

Morrisons is one of the oldest supermarket chains in food retail industry and compete within theU.K. and they have no branches outside the country can create impact on the company in future.

Again, advancement of technology absenteeism and biased creating environment within thecompany can also affect them in long run such as subsidiary to the European farmers and provide

low wages to them, in addition to less number of hours and work can create huge impact in the

company policy. Moreover, U.K. allowed huge diversification culture pattern currently, likeIndian, Chinese, etc can affect the Morrisons take away food model. Other European economy

are stable comparatively U.K. can create an opportunities for Morrison to go ahead for

expansions. Thus the comprehensive analysis above provides a brief scenario for Morrisons forfuture development.


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SWOT Analysis:

Kotler and Keller (2007) defined SWOT analysis is a company or business overall evaluation of

strength, weakness, opportunities and threat and it is basically divided into parts; external andinternal environment of the business.

Strength:

Origination of Market Street by Morrisons created huge impact on the growth and expansion of

the company. Again Morrisons supermarket concept is hold up by the strong traditional cultures

which attract the elderly customers to shop from the market. Moreover fresh and frozen fish foodis the key concept of Morrison to catch and bring in customers in the store. Apart from this

grocery concept always attract the customer to buy at the competitive price.

Principles of marketing strategies

People Oriented Marketing

The purpose of marketing strategies is to create the added advantage of the company. The

strategies that are supported to the customer orientation is the most important one because the

customer is the king of market.

The Cost Of Something Is What You Give Up To Get It.

Marketing strategies are planned according to the pricing of their products. Company set their

pricing that are supported their products and customer are likely to buy it.

Reward System Strategies

Strategies are prepared to satisfy the customer and employees. Bonus Cards, loyalty cards are the

rewards that organization gives to their customers just to retain them.

Competitive Advantages

Marketing strategies are prepared according to the competitive advantage of the competitor.

Marker Base Assets

Marketing strategies are supported to the brand name, brand image, company name and then

cash them to gain advantage.


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Star

High growth business or products that competing the market where they have competitive

advantage/ edge as compare to the competitor. Normally heavy investments are required to existin the market. Morrison may not fall in this part of the matrix.

Cash Cows

Business growth is low or product having relative market share. There is normally low business

and little investment is required to retain in the market. Good leadership and strategies are

required for growth. Morrisons is in this area of matrix.

Question mark

Business or product have low market share but exist in the high growth market. Businesses inthis area are required high investment but they have potential to grow high. Management have to

make some growth strategies that Morrison have done and now in the growth position

Task 2

market segment.

Market segmentation is the division of a market into different groups of

customers with distinctly similar needs and product/service requirements.

3Market segmentation consists of three bases: prof i le, psych ographics

and behaviour . These bases consist of important characteristics such as

demographics; p urchase occasion; percept ion and bel iefs; usage;

benef i ts sough tetc. In turn, each of these characteristics consists of

important variables (i.e. demographic variables are age, life style stage,

gender, family structure, income and occupation and geographic variables

are nation, states, regions, countries, cities and neighbourhoods

Apart from behavioural segmentation, Tesco supermarkets use profile

segmentation. Based on this Tesco, Sainsburys, ASDA, Marks & Spencer and

Morrisons use demographics to segment their market, differently though. What

they share in common is that by using demographics (income levels, group age


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or lifestyle) they aim to target particular income groups, single people or even

people with a busy lifestyle, who for example prefer meal deals or ready cooked

meals for their convenience.

In the case of Marks and Spenser supermarkets, they use behavioural

segmentation as well as profile segmentation. Marks and Spencer uses a

lifestyle approach, which is included in the demographic style of segmenting the

market since it provides products such as kitchenware, bedding and personal

care and other related products 6. Also, M&S clothes department by changing its

females clothesline to the younger style tried to attract younger female shopper

1. Furthermore, by offering high prices and good quality in their food stores, they

try to attract consumers with high disposable income in their 30s -50. This is

another demographic segmentation as is concerned with income and occupation

segmentation.

In particular, ASDA and Tesco have invested in the development of product

lines targeted at singles with high disposable incomes and busy lifestyles with

their meal for one ranges. This is in contrast with the family value and multi-

packs targeted at families1 Moreover, ASDA is not only targeting the low-income

segment of the market, but it is also attracting consumers from other income

levels (middle and high) by offering essentially the same products at different

prices. For example, the ASDA smart price range of products is sold at very low

prices in a very basic packaging. They also offer these products at slightly

higher prices with better packing and higher quality, while they also offer famous

brands for those who are available to pay more1. Furthermore, ASDA also

collects data from their customers through its bonus card system. This helps

them to generate information about the lifestyle of their customers. In addition,

this responds to the behavioural base of segmentation, since ASDA is using this


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information to evaluate the needs of its customers in order to respond

respectively. On the other hand, Sainsburys major target audiences are the

people with average to average-plus income, and its promotion is currently based

on the Live Well For Less

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slogan (the national advertising campaign hasstarted in September 2011). Sainsburys like other companies uses segmentation

strategies in order to attract customers. Although, Sainsburys is using

behavioural and geographical segmentation, it also uses its loyalty card (nectar

card) to collect information regarding the buying habits of the costumer.

Furthermore, Sainsburys has geographic segmentation. According to a website3

at the period of 2002 Sainsburys 463 stores, which are can be divided into three

different categories. Firstly, Sainsburys had 275 shops focus on families

entertainment, as a majority of the families is to go for shopping especially in a

weekends. This strategy is also identified as main mission. Secondly, they had

64 hypermarkets that were offering a wider range of food and non -food items.

Finally, the rest 124 stores had the combination of the two above features.

Furthermore, Morrisons targets the customers who are lower income earners.

This can is reflected by the fact that Morrisons is more popular in the areas of

the U.K where the income is lower and poverty is higher 4. By exploiting the

above opportunity, they have focused more on these areas. As a result, their

market share in specific locations is higher than in other areas. Consequently,

the strategy that Morrisons follows is also based on geographic segmentation.

Moreover, Morrisons allocates its products in different stores depending of the

local customers needs. According to Boland, Morrisons senior manager, their

Kilmarnock store will look very different from our Wimbledon store5. Therefore,

since Morrisons aims to satisfy their customers needs they apply the

behavioural base of segmentation.


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Positioning of morrisons.

On 15 March 2007, Morrisons announced that it would ditch its existing

branding and strapline in favour of a more modern brand image. Their

lower price option brand, Bettabuy, was also changed to a more modern

brand called the Morrisons Value range. This brand was then changed

once again in 2012 as Morrisons launched their low price option brand

called M Savers.

Product distribution

This is done by using as suppliers small farm producers who offer high

quality goods. Marks and Spencer is following the strategy of selling a

relatively low quantity of high quality products at a high price. Moreover,

M&S is offering different kinds of products from the majority of food

products as well as non-food products (clothes, accessories for home)

Pricing strategies

Pricing strategies for products or services encompass three main ways toimprove profits. These are that the business owner can cut costs or sellmore, or find more profit with a better pricing strategy. When costs arealready at their lowest and sales are hard to find, adopting a better pricing

strategy is a key option to stay viable

Merely raising prices is not always the answer, especially in a pooreconomy. Many businesses have been lost because they pricedthemselves out of the marketplace. On the other hand, many business andsales staff leave "money on the table". One strategy does not fit all, soadopting a pricing strategy is a learning curve when studying the needsand behaviors of customers and clients


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Task 3

TRENDS

Ready meals have continued to outperform the frozen and chilled sectorslargely thanks to some good pricing and marketing strategies on the part ofall involved. Ready meals have continued to benefit from the longer-termtrends towards changes in peoples lifestyles and their eating andshopping habits. Although consumers may be willing to cut costs, they arelooking for convenience.

COMPETITIVE LANDSCAPE:

The top six companies leading sales in 2012 are all retailers of private

label brands. Private label brands in total are expected to constitute 74%

of ready meals value sales. Leading the pack is Tesco Plc, with over 21%

of value sales in 2012.

PROSPECTS:

Ready meals is forecast to grow at a rate of 4% per annum in value terms

over the forecast period, standing apart from the forecasts for rival

categories such as chilled prepared food and frozen food. Ready meals

have seen a large amount of new product development, and it feels as

though there is much more to come with many companies expanding lines

in this area.


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Our vision to be the Food Specialist for Everyone is now well advanced.Our constant focus on freshness, great value and outstanding service isappealing to more and more people. And were now closer to morecustomers, having opened 43 new stores last year.

The supermarket is targeting students with an extensive food to go offercatering for breakfast and lunch and will also offer a coffee and baconsandwich deal for 2 at its food to go coffee counter in a bid to directlycompete with coffee chains such as Costa and Nero located nearby. Thestore opens today (16 January) in Manchesters Grafton Street, situatedamong Manchester University buildings.


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Micro and macro environmental factors are discussed in the study of Marketing.Micro environmental factors are those which the firm can directly control. Examples

of this are: product, price, place and promotion. Macro factors are those over which

the firm has no control. Examples of this would be: political and legal factors,

economic factors, technological factors and social and cultural.

Morrisons has secretly opened an unbranded central London pop-up kitchen

restaurant this week in an effort to win over consumers and foodies to its new ready

meals range.

The kitchen, which is open in Great Marlborough Street until tomorrow (13

October), is serving dishes made by five top chefs, including Aldo Zilli. Although no

branding will say so, the meals are all recipes from Morrisons new M K itchen ready

meals range, which officially launches with a TV ad during 'The X Factor' this

weekend.

Evidence-based health care practices are available for a number of conditions suchas asthma, heart failure, and diabetes. However, these practices are not always

implemented in care delivery, and variation in practices abound. Traditionally,

patient safety research has focused on data analyses to identify patient safety issues

and to demonstrate that a new practice will lead to improved quality and patient

safety.

asim junaid

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